New statistics show average wealth remained stable while wealth inequality remained high.
According to the latest data from just before the pandemic, a typical household in Scotland had £214,000 in total wealth, similar to previous years. A typical household in the wealthiest 10% of households had £1.6 million in total wealth, whereas a typical household in the least wealthy 10% of households had £7,500.
The least wealthy households rarely own property or have any private pension savings. Their wealth is mainly made up of the value of their possessions such as cars, furniture and clothing.
Wealth inequality was more severe than income inequality: the 2% of households with the highest incomes had 9% of all income, while the wealthiest 2% of households had 15% of all wealth.
Households that tend to be wealthier than others are higher income households, pensioner couples, and home owners. In contrast, households with below average wealth tend to be low income households, lone parent and single working-age adult households, and those in rented housing.
Three out of ten households had insufficient savings to keep them above the poverty line for a month should they lose their income. Four per cent of households were in unmanageable debt. A third of households did not own any property, and a third of adults had no private pension savings.
The released figures were produced in accordance with professional standards set out in the Code of Practice for Official Statistics
Culture and events sectors to benefit from £16 million
The Scottish government’s Omicron business support fund will help cultural organisations, events, museums and freelancers recover from the economic impact of coronavirus restrictions.
£16 million funding for this financial year is being allocated as follows:
£12 million to Creative Scotland towards support for a hardship fund for creative freelancers, a recovery fund for cultural organisations and for Edinburgh Festivals celebrating their 75th year. Details of these funds will be announced next week by Creative Scotland.
£2 million for EventScotland to increase the total support for EventScotland’s national and international events programmes.
£2 million additional support for the Museums Recovery Fund to support a wider range of museums to recover from the pandemic.
Culture Minister Neil Gray said: “This further £16m in support for the culture events, heritage and creative industries recognises how much we value these sectors which have been among those hit hardest by the pandemic.
“As we embark on our recovery, cultural activity has a pivotal role to play in reinvigorating our economy and communities as well as promoting individual well-being.
“Since the beginning of the pandemic the government has announced more than £240 million for culture and events and we are continuing to work closely with these sectors as they rebuild audience confidence.”
Iain Munro, Creative Scotland’s Chief Executive said: “This additional funding from the Scottish Government is very welcome and will provide a lifeline for many in the culture sector who have lost income as a result of the ongoing pandemic.
“We are working quickly to get this funding to those who need it most. Details of how creative freelancers and cultural organisations can apply for the funding will be communicated shortly.”
Paul Bush OBE, VisitScotland’s Director of Events said: “The additional £2 million in funding for Scotland’s events sector is welcome news as we continue to navigate through the impact of recent Covid-19 restrictions and look towards the future.
“It is vital that we continue to support the recovery of Scotland’s events sector by showcasing a wide-ranging event offering, whilst keeping Scotland top of mind and reinforcing its status and reputation as a world-class event destination.
“This additional funding will ensure we can continue to rebuild our vibrant events sector by developing a diverse portfolio of events that inspire both visitors and locals to attend, but which also deliver social and economic benefits to local communities across the country.”
Details of Creative Scotland’s funds will be available here:
Continued caution advised as second storm approaches
With severe weather set to continue into the weekend, the Scottish Government is urging people to continue to exercise caution and follow the latest travel advice.
Deputy First Minister John Swinney is due to chair a further meeting of the Scottish Government’s Resilience Room (SGoRR) on Thursday evening as the co-ordination of the response to Storms Dudley and Eunice continues.
All warnings for Storm Dudley have now been lifted but a yellow warning remains from the early hours of Friday when Storm Eunice may bring heavy snow and strong winds to much of the country.
Deputy First Minister John Swinney said: “With two storms back to back, we expect severe weather to continue into the weekend across large parts of the country.
“We would strongly urge everyone to continue to pay close attention to the latest travel advice and to exercise caution on the roads.
“Storm Eunice may bring heavy snow and strong winds to much of Scotland from the early hours of Friday, posing further risks to transport and other essential services.
“The Scottish Government’s resilience committee will continue to monitor the situation. We remain in close contact with local authorities and emergency and essential services to ensure people in the affected areas receive the latest information, advice and support where needed.”
Cats Protection is urging the Scottish Government to do more to ensure people who rent their own homes can benefit from owning a pet cat.
The charity says that the widespread use of blanket ‘no pets’ policies is unfair and outdated, and that an overhaul of how pets are viewed in the rented sector is urgently needed.
Cats Protection’s Advocacy & Government Relations Officer for Scotland Alice Palombo said: “The pandemic has really highlighted just how important pets are in our lives – whether it’s providing companionship to people living alone, comfort for those with ongoing health conditions or simply a fun and much-loved part of family life.
“Yet as the law stands, it can be impossible for people who rent their home to own a cat. It cannot be right that pet ownership is largely reserved for those people who own their own home.”
Research from Cats Protection’s Cats and Their Stats Scotland report, published in 2021, shows just how important cats are to people who are able to own them – with 94% of owners in Scotland saying their cat is part of the family and 91% saying their cats bring them joy.
The Scottish Government is currently consulting on proposals to allow tenants to keep pets in rented housing, and Cats Protection is asking its supporters to back the proposals.
Alice said: “This consultation is a big step in the right direction and we’re urging the Scottish Government to continue this momentum. Scotland is a nation of animal lovers and it’s only right that everyone should have the chance to own a cat if they wish.”
Mum-of-two Stephanie Wood, of Balornock, Glasgow, is backing the charity’s campaign after she was forced to give up the family’s much-loved cat Whoopie when she struggled to find a new pet-friendly home.
The heart-breaking decision, just before the COVID-19 pandemic in early 2020, came at a particularly stressful time for Stephanie, who works as a clinical healthcare assistant in two NHS hospitals. It meant her daughters – then aged six and one – faced lockdown without their beloved cat and denied Stephanie the comforting and calming presence of a pet.
Stephanie explained: “Our landlord decided to sell the property we were renting, and I found myself in the position of having four weeks to find a new home. I was aware the lockdown was on the horizon, so it felt like a real panic to find somewhere. When I did find a suitable home, the landlord said she’d only consider a pet once we’d been there for six months.
“It seemed like an impossible situation and we had no choice but to give Whoopie up to Cats Protection. It was heart-breaking – me and the girls are still very upset about it. Whoopie was part of our family, she was fun, affectionate and a big part of our lives. She used to sleep snuggled up to my eldest daughter and she had a really calming effect on us all.
“Working for the NHS during the pandemic was incredibly difficult at times, and I often thought how lovely it would have been to come home to Whoopie, but sadly that was not possible. It just feels incredibly unfair that families like mine are denied such a simple pleasure of owning a pet cat.”
You can support cat owning tenants by using Cats Protection’s simple online form – it takes only a couple of minutes to complete.
Eligible parents are being urged to apply for Scottish Child Payment on the first anniversary of its roll out.
The payment of £10 per week, unique to Scotland, began in February 2021 as a direct measure to tackle poverty. It provides regular, additional financial support to parents and carers to help with the costs of caring for a child.
Since launch, the families of around 106,000 children have benefited from £520 a year and the payment will double to £20 per week from April.
By the end of this year – subject to data being made available by the DWP – the payment will extend to include all eligible children under the age of 16.
In 2019-20 the Scottish Government invested nearly £2 billion in support for low income households, including over £672 million targeted specifically at children.
Shona Robison, Cabinet Secretary for Social Justice, Housing and Local Government said: “The Scottish Government is determined to deliver on our ambition to eradicate child poverty in Scotland. So this year we will be even bolder with the ambitious and transformational measures we will take.
“From April, our Scottish Child Payment will double to £20 a week – four times the amount anti-poverty campaigners originally asked for. Together with our Best Start Grant and Best Start Foods payments, this will provide a package of financial support worth £8,400 by the time an eligible family’s first child turns 6.
“The extension to 16 year olds will continue this progress with the number of eligible children increasing to 430,000. In 2023-24 we estimate the Scottish Child Payment could lift 40,000 children out of poverty.
“This is part of the national mission we have set ourselves and society to tackle child poverty and our focus must be relentless and constant.
“Because many people learn about Scottish Child Payment through word of mouth, if you think a friend or family member might qualify, please encourage them to find out more and to help to ensure that everyone eligible gets the support they are entitled too.
“This way, we can all play a part in ensuring the continued success of Scottish Child Payment, advancing our fight to eradicate child poverty and building an equal and fairer country.”
The Scottish Government committed to introducing the Scottish Child Payment in June 2019 as part of the Tackling Child Poverty Delivery Plan.
John Dickie, the Director of the Child Poverty Action Group, said: “The Scottish Child Payment is already providing vital financial support to families, helping parents give the best possible start in life to their children.
“Doubling its value from April comes at a critical time, helping families stay afloat as food and energy prices soar. The roll out to eligible children over five is now eagerly anticipated and really can’t come soon enough.”
A consultation has revealed strong support for proposals to establish a National Care Service accountable to Scottish ministers.
More than three-quarters (77%) of people who responded to the official consultation thought the main benefit of the proposed change would be more consistent outcomes for people accessing care and support across Scotland.
Meanwhile more than two-thirds (72%) of those responding agreed that the Scottish Government should be accountable for the delivery of social care through a National Care Service.
There were over 1200 responses to the consultation.
An analysis of responses from individuals and organisations on plans was published yesterday, following publication of the individual responses last week. The responses also highlight the risks which could emerge from such significant reform, but the need for change in the immediate and longer term is a key theme.
The consultation process represents the first phase of engagement for the National Care Service programme.
Social Care Minister Kevin Stewart said: “We will consider all views expressed in the consultation very carefully and I would like to thank all those who took part. It is clear that there is a real appetite for change.
“We will continue to engage with people with lived experience of the service whether they are people accessing care and support, their families, care workers or providers.
“The final scope of the National Care Service has not yet been concluded. Over the coming weeks, we will have the opportunity to reflect on these views of the public. We will then be in a position to bring forward the detailed plans for improvement to be undertaken over the course of this Parliament.
“However we are not waiting to act to enhance Scotland’s social care services that’s why we invested £300 million to help deal with winter pressures, and we’re determined to go further.
“We are committed to acting now to improve things for people. I am therefore delighted to announce today that we will develop and publish a standalone Carer’s Strategy with a focus on Covid recovery and improving carer support in a meaningful and sustainable way. We will engage with unpaid carers about its scope and purpose in the coming months to inform its development.
“Our aim will be to draw on the knowledge and lived experience of unpaid carers so that the strategy is shaped by those who best understand the many challenges faced.
“We will seek to publish the strategy by late spring to provide a clear vision for how we will respond to the challenges faced by so many carers.”
The public consultation attracted nearly 1,300 responses, from around 703 individuals and just over 575 organisations. A significant proportion of the responses came from individuals with lived experience, or bodies that represent them.
The social care workforce are also well represented in the responses, along with providers
Actions taken to support immediate improvements on social care include:
Investing £300 million of winter pressures funding in October, to maximise the capacity of the NHS and social care system this winter and in particular to bolster the caring workforce by increasing their numbers, providing them with additional support
Making additional funding of up to £48 million available to enable employers to provide an uplift to the hourly rate of pay for staff offering direct care within Adult Social Care to a minimum £10.02 per hour from the 1 December 2021
An additional £4 million to expand support for unpaid carers this winter, including to enable them to take breaks from caring
Developing options to remove non-residential charging as soon as possible
Finance Secretary Kate Forbes announced a further £290 million in financial support to help address the rising cost of living at Holyrood yesterday.
Ms Forbes said that while the Scottish Government is awaiting final confirmation from the Treasury on funding allocations, the £290 million for Scotland announced by the Chancellor of the Exchequer last week is not likely to mean net additional funding. This is due to an expected reduction of a similar amount in other consequential funding previously anticipated through the forthcoming UK Government Supplementary Estimates.
Despite these budget pressures and existing support in place to help people, Scottish Ministers have honoured the commitment to allocate £290 million to help tackle the cost of living crisis and are going further to ensure those hardest hit have support.
New measures announced include:
£280 million to provide £150 to every household in receipt of Council Tax Reduction in any Band and to provide £150 to all other occupied households in Bands A to D. This means 1.85 million households, or 73% of all households, will receive financial support through their council tax bill or a direct payment
£10 million in 2022-23 to continue the Fuel Insecurity Fund to help households from rationing their energy use
This is in addition to the £120 million previously announced for local government in 2022-23.
A further £39.5 million has also been allocated to businesses from the £375 million of Omicron business support funding for the current financial year. Following consultation with businesses, who asked for financial support to now focus on economic recovery, this funding will help support local economies and cities continue their economic recovery and help build a more resilient economy.
Funding allocated includes:
£16 million for culture and major events
£7.5 million to support inbound tour operators
£6.5 million to support the childcare sector
£3.5 million for outbound travel agents
£3 million for city centre recovery
£3 million to help digitalise SMEs to increase competitiveness, productivity and drive growth
Ms Forbes said: “Large rises in energy bills, increased costs on every day essentials, rising interest rates and the UK Government’s new National Insurance hike are causing huge concern and worry, and people are struggling. These additional costs will hit the most vulnerable in our society, the hardest.
“That is why we will honour our commitment, whatever other Budget challenges we face, to pass on the full £290 million to help families now. I am therefore today announcing that there will be three elements to the package of support today.
“Firstly, we will provide £150 to every household in receipt of Council Tax Reduction in all Council Tax bands. The Council Tax Reduction Scheme already identifies households in greatest need and will allow us to target this intervention.
“Secondly, I will provide local authorities with funding to pass on £150 to other occupied household in Bands A to D in Scotland. In total, combining these elements, 1.85 million, or 73% of all households, will receive £150 of support. I know that the cost of living crisis is affecting households who are not in receipt of benefits, who are not claiming a Council Tax Reduction. And they are facing hardship too. We must seek to do what we can to prevent those households and families on the edge of the poverty line, from falling over it.
“Thirdly I am also announcing £10 million in 2022-23 to continue our Fuel Insecurity Fund to help households at risk of self-disconnection, or self-rationing their energy use, due to unaffordable fuel costs.
“Households across Scotland, across the UK, are struggling with the wide range of rising costs and many of the macro levers, for example, around energy regulation reside with the UK Government. That is why I will be writing to the Chief Secretary to the Treasury, again highlighting that we must work together urgently so we can use our joint powers to do more to tackle the cost of living.”
Responding to the Budget announcement Peter Kelly, Director of the Poverty Alliance, said: People across Scotland are feeling the grip of poverty tighten on their lives. But the measures announced today by the Scottish Government in response to the cost of living crisis do not do enough to target support at people on the lowest incomes.
High school pupils and staff will not be required to wear face coverings in classrooms from 28 February, after the schools mid-term break.
Teachers and pupils who wish to continue to wear a face covering in the classroom should be fully supported in doing so.
Face coverings will still be required in communal areas, subject to future review.
Specific mitigations relating to assemblies and transition visits for learners who will start primary or secondary in August 2022, will also be eased as of 28 February.
First Minister Nicola Sturgeon said: “In recent weeks I have promised to keep Parliament and school communities updated on mitigations within schools – including the use of face coverings within classrooms.
“I have been clear that we do not want to keep these measures in place for any longer than is necessary, but that we must continue to be led by scientific and expert advice.
“On Tuesday our Advisory Subgroup on Education and Children’s Issues met to discuss a number of issues, including the use of face coverings.
“The group reiterated its previous position that the removal of mitigations in schools should follow a phased approach. It also advised that the next phase could begin after the February half-term break, with the removal of face-coverings in classrooms – for both pupils and staff – on 28 February.
“In arriving at their decision, the Advisory Sub-Group pointed to reducing case rates for secondary-aged pupils, falling hospitalisation rates across all age categories, and the fact that the estimated R rate is below 1 and decreasing. In addition, vaccination rates for young people continue to increase.
“This change represents a further step in allowing our children and young people to return to a more normal school experience after many months of sacrifice.
“We currently expect that face coverings will still be worn outside the classroom, in indoor communal areas of schools, after 28 February. This will be kept under regular review. In addition, anyone who wants to continue wearing a face covering in classrooms will, of course, be supported to do so.”
Commenting following the First Minister’s statement in the Scottish Parliament, EIS General Secretary Larry Flanagan said: “The majority of EIS members supported the retention of face coverings until we were through the winter period so we would have preferred the end of March rather than the end of February for this change to happen.
“Having said that, it is important that both pupils and staff have the right to continue to wear face coverings if they wish and, in some cases, where there is a heightened vulnerability in play, face coverings may still be required.
“There has been a slight drop in infection levels within schools but they remain high – over 4,000 staff are off school for Covid related reasons and more than 20,000 pupils. Enforcing the remaining mitigations, therefore, around ventilation and face coverings in communal areas, remains critical to school safety.”
Scotland’s major festivals are to benefit from a share of the Scottish Government’s £2m Festivals Expo Fund.
The funding has been awarded for events that run across the year including Edinburgh’s international, book, film and fringe festivals as well as Glasgow International Festival and Celtic Connections.
Since the annual fund was set up in 2008 it has given out over £30 million to support the development of Scottish-based artists and practitioners to create a legacy of important new work for a range of Scotland’s international festivals.
Funding this year will also support festival resilience plans following the Covid-19 restrictions.
Culture Minister Neil Gray said: “As many of our world-class festivals return to full operation following the pandemic, the Festivals Expo Fund plays an important role in building innovation across the sector.
“This helps to maximise the opportunities both nationally and internationally for emerging and established creative artists to showcase and tour their work at home and abroad.”
Sorcha Carey, Chair of Festivals Edinburgh said: “The welcome news today from the Scottish Government’s Festivals Expo Fund opens up a world of opportunity for our country’s artists and thinkers, by helping us invest in their talent and showcase their work on our world-renowned platforms.
“After two years of event restrictions and financial hardship for artists, freelancers and cultural organisations, including our festivals, this Expo investment lays a solid foundation for revival in our 75th anniversary year and speaks strongly of Scotland as a creative, outward-looking nation.”
Lorna Duguid, Multi-artform Manager at Creative Scotland said: “The support from the Scottish Government Expo fund is invaluable to Scottish artists and companies in enabling them to present work to international audiences and promoters.
“As Scotland begins to recover from the pandemic this opportunity to reconnect with audiences around the world is more important than ever as part of the recovery for the arts and creative sectors.
“The funding will enable the festivals to extend their reach and provide ambitious and innovative programmes for audiences at home and abroad.”
The 2022-23 Festival Expo Fund has a budget of £2 million. The fund is managed by Creative Scotland on behalf of the Scottish Government.
Details of the 2022-23 allocations are as follows:
The latest skirmish in the economics of independence wars relates to the state pension. Specifically, which government would pay State Pensions in an independent Scotland. Ian Blackford maintains that the UK government will pay the State Pension to Scottish residents who qualify for a UK state pension through their pre-independence national insurance contributions (NICs).
But state pensions are not paid for from a “pot” that individuals build up during their working lives. Instead they are paid using money from today’s taxes and borrowing – a pay-as-you-go scheme. Since individuals have no ownership rights over their past contributions, the UK Government can change the qualifying rules for state pensions as its sees fit.
Recent and proposed increases in the qualifying retirement age are examples of it such rule-changes. The State Pension is simply a benefit that UK government could reduce, or even, in principle, eliminate.
This pay-as-you-go aspect might seem to negate any commitment of the UK government to pay the State Pension in an independent Scotland – even to pensioners who contributed NICs and other taxes to the UK government during their working lives.
The UK government could argue that the tax and NICs made by Scottish residents were used to pay for public services that they previously enjoyed. Under this view, the Scottish Government would become responsible for paying the state pensions of qualifying Scottish residents from its own revenues post-independence.
But this is not the whole story. UK government pays State Pensions to those who retire abroad (providing that they have made sufficient qualifying NICs). Therefore if the UK government pays the State Pension to an individual living in, say, France, it would seem inconsistent for it not to pay the State Pension to an individual with a similar NICs record living in an independent Scotland[i].
It is this point that the SNP is now using to argue that the responsibility for paying the State Pension in an independent Scotland – for those who have sufficient NI contributions – would fall to the UK government.
The UK government is likely to argue that succession – and the transfer of a significant share of the UK’s tax base to the Scottish government – constitutes an unprecedented change in circumstances that renders comparisons with the treatment of individuals under current state pension policy irrelevant. It would expect the Scottish government to make a reasonable contribution to the costs of the State Pension in Scotland.
The issue would therefore become a matter for wider negotiations around the division of assets and liabilities in general, and reciprocity agreements for social security more specifically.
The UK has social security agreements with many countries. These stipulate how state pensions will be calculated when individuals have made contributions in more than one country. Similar agreements between the UK and an independent Scotland will be necessary to deal with individuals retiring post-independence who have made NI contributions in both Scotland and the UK.
The UK had such agreements with EU countries before Brexit, and maintained similar arrangements in the Trade and Co-operation Agreement between the UK and EU. The UK also has social security agreements with other countries, including the US and Australia.
There would clearly be pressure on an independent Scotland to make such an agreement with the remaining UK. The absence of an agreement would be an impediment to cross-border trade with potentially harmful economic effects.
In the post-independence long run, as those who have paid NICs to the UK government die off, the cost of supporting the state pension in Scotland will unambiguously fall on the Scottish Government.
In the short run, the Scottish government might refuse to contribute to these costs, but if it did so, there would be implications for the broader settlement. This final agreement is impossible to anticipate though it is worth noting that there is no arbitration procedure for the break-up of a state, in which case the outcome will likely depend on which party has most to lose by a failure to agree.
In summary, the question of which government would be liable for the State Pension in an independent Scotland is both more complex and more uncertain than either ‘side’ might claim.
And it likely cannot be resolved in isolation from other questions.
[i] The question of citizenship in an independent Scotland is immaterial to this analysis. Under current state pension rules, it is NICs rather than citizenship that determines eligibility. Thus whether an individual in an independent Scotland has Scottish, UK or dual citizenship (or any other nationality) would not under current policy influence eligibility for the state pension.
The Fraser of Allander Institute (FAI) is a leading economy research institute based in the Department of Economics at the University of Strathclyde, Glasgow.
